Ask Our Agent with Compass Real Estate Agent Karin Diana, Founder of The Home Collective
Grab Diana’s free worksheet that lays out the pros and cons to renovating or selling your home — with numbers! Email her Karin.Diana@compass.com.
KEY TAKEAWAYS
- Submit your true “highest and best”, sellers rarely offer a second chance.
- Terms matter as much as price, including down payment, financing, lender, and agent.
- Sellers prioritize low risk, and clean, simple offers rise to the top.
- Contingency waivers can beat higher-priced offers, especially inspection and appraisal.
- The highest offer doesn’t always win, strong terms and trustworthiness often do.
When multiple interested buyers line up for a property, it can be tempting to focus only on the top dollar bid. But as Compass agent Karin Diana explains, a strong offer isn’t just the highest number. It’s a well-constructed package that gives the seller confidence, minimizes risk, and aligns with their preferred timeline. Here’s how to think about offers the way a seasoned agent does.
The “Highest & Best” Deadline Matters
In hot markets or when multiple offers are expected, Diana says agents often set a firm deadline for “highest and best” and it usually falls on the Tuesday or Wednesday after the first weekend the home hits the market. “Typically when a seller’s agent is anticipating multiple offers on a property, we will create our highest and best deadline, usually that Tuesday or Wednesday after the initial weekend. We mean it when we say best and final produce and provide your very best offer and terms.” shared Diana.
What this means: When that deadline hits, it’s the buyer’s one real chance to lay it all on the table. If you come back later revising your offer, it may reflect poorly, or simply strengthen the offer the seller already accepted.
Submitting early with your strongest offer sets you up as serious, prepared, and fully committed to the home.
What “Offer” Versus “Terms” Actually Means
To many, the “offer” means price. But as Diana clarifies, price is only part of the equation. The “terms”, down payment, financing, contingencies, closing timing, are often equally important, if not more so.
“The offer obviously is the number that you’re offering to pay for the house. The terms or the other categories that create a strong offer is basically how much you’re putting down as a down payment. Are you putting down 10% or 50%? Are you all cash or are you getting lending? Other terms that we look at are whether or not the buyer can close in accordance with the seller’s preference of closing. We will look at who your lender is. We’ll look at who your agent is.” shared Diana.
In other words, are you ready, credible, and aligned with what the seller wants? Those “terms” can make or break the deal.
Money, Certainty & Convenience
Diana boils down what sellers are evaluating to two core priorities: maximizing their net return at closing, and minimizing the risk or uncertainty involved in the transaction.
A strong offer isn’t just about what the buyer is willing to pay. It’s about giving the seller confidence that the deal will close smoothly, on time, without surprises. “So it’s appeasing to the seller’s desires and needs. It’s providing your very best number, and it’s also making your offer package as easy and as risk-free as possible.” stresses Diana.
This might involve strategies such as loosening or waiving contingencies, speeding up closing, or demonstrating reliable financing or cash readiness.
when to waive contingencies
Contingencies can slow down or complicate a sale. For sellers, fewer contingencies often mean less risk. Diana explains why many strong offers skip or soften these safeguards, “For the seller, that might mean loosening inspection contingencies. It might mean waiving the appraisal contingency. In some cases it could even mean waiving the mortgage contingency… it’s ease and the highest amount of money and all of the parties involved in that transaction, having the most amount of confidence and trustworthiness coming forward as a whole.”
By showing a willingness to make the process smoother, even at added risk for the buyer, you often increase your odds of being selected. That said, waiving contingencies should always be approached carefully and deliberately, with full awareness of the tradeoffs.
SELLER MOTIVATIONS
Diana points out that not all sellers are looking for exactly the same thing. For some, it’s about maximizing the price. For others, it’s about minimizing risk or aligning with a certain closing date. She expresses “Some sellers are motivated by the most amount of money they’re going to walk away from. Some sellers are more interested in the least amount of risk. Some sellers are looking for a closing date that’s aligned with their preference. It really is a whole approach, not just one particular term involved in getting an offer accepted.”
That’s why what makes an offer “strong” varies and why a well-rounded offer package is often more effective than simply the highest price tag.
Diana also notes that strong, reputable financing can sometimes carry nearly as much weight as cash. She mentions “there are very reputable lending companies that provide a pre-approval with their offer that is almost as good as as being all cash in some cases.”
Why the “Top Offer” Doesn’t Always Win
Interestingly, Diana shares that the highest bid doesn’t always win, especially when another buyer offers less money but brings a stronger, more trustworthy package.
The strength of the offer could come from factors such as:
- A reliable lender the agent knows and trusts
- A buyer’s agent the listing agent has confidence in
- Reduced or waived contingencies (inspection, appraisal, mortgage)
- Clean, simple financing or all-cash with minimal strings attached
For sellers, the certainty and smoothness of closing, along with transparently structured offers, may outweigh a higher price that comes with more complications.
Good luck, future Montclair homebuyers!
A high-touch agent known for her extensive market expertise and her unmatched devotion to clients, Karin’s success is based almost exclusively on referrals. Specializing in residential real estate in the New Jersey suburbs of New York City, she makes the experience of buying or selling property simple by combining her keen instincts, impeccable client service, and attention to market trends. Throughout the process, Karin offers a common-sense approach with sharp negotiating skills honed over the past three decades. Work with Karin | karin.diana@compass.com
